How does the ATVM application evaluation process work?
The ATVM program’s application process includes application intake, conducting preliminary due diligence and providing preliminary terms and conditions for the proposed ATVM program loan, conducting advanced due diligence and issuing a conditional commitment letter for the proposed ATVM program loan, and finalizing loan documents and closing. To learn more about the ATVM application process and eligibility requirements please visit /lpo/products-services/advanced-technology-vehicles-manufacturing-loan-program. Interested applicants should also review the ATVM eligibility requirements and the Updated Guidance for Applicants to Advanced Technology Vehicles Manufacturing Loan Program.
Does a determination that an application is substantially complete mean that DOE has determined that the applicant and project are eligible for a loan?
An application is substantially complete when the ATVM loan program determines that the application contains all of the information required by 10 CFR 611.101.The determination of substantial completeness is the first step in the review process and does not indicate that DOE has made a determination that the applicant and project are eligible for a loan. Once the application is deemed to be substantially complete, the ATVM Program will conduct an initial assessment of the technical and financial aspects of the application in order to determine whether the application will be moved to preliminary due diligence. If the ATVM Program determines not to move the application to preliminary due diligence, the application will be rejected and no further action taken by the ATVM Program..
To what extent can qualifying components and engineering integration be used in vehicles that are manufactured outside of the United States?
The manufacture of qualifying components and/or engineering integration funded by an ATVM loan must take place in the United States. Furthermore, the resulting advanced technology vehicle (ATV) utilizing the qualifying component or engineering integration must be sold in the United States.
Are loans available for research and development projects?
The ATVM program was intended to support the production of fuel-efficient, advanced technology vehicles (ATVs) and qualifying components in the United States, therefore loans are not available for research and development projects. Section 611.100 of the Interim Final Rule describes who may be eligible for loans. To be eligible, an applicant must be an automobile manufacturer or an automobile component manufacturer.
Are there funds available for the ATVM grant program?
Congress has not appropriated funds for the grant program at this time. Accordingly, no applications are being accepted for the grant program.
Is there a small business set aside for loans?
A small business set aside is not available under the ATVM loan program; the small business set aside is only applicable for the grant program.
Will DOE allocate set amounts of the available loan fund to manufacturers of advanced technology vehicles and manufacturers of qualifying components?
No. DOE will not allocate set amounts of the funds available for loans to manufacturers of advanced technology vehicles and manufacturers of qualifying components.
How do I apply for an ATVM loan?
Applicants are encouraged to review the eligibility requirements before applying. Applications may be submitted by using the LPO Online Application Portal. To learn more about the ATVM loan program application process please visit www.energy.gov/lpo/atvm-application-process.
When are loan applications due?
Applications are currently received on a rolling basis.
If my application contains company proprietary or confidential information, how should I mark such information to ensure it is not made public?
If elements and/or attachments of an application for a loan under Section 136 of the Energy Independence and Security Act of 2007 contain information the applicant considers to be trade secret, confidential, privileged or otherwise exempt from disclosure under the Freedom of Information Act (FOIA, 5 U.S.C. 552), the applicant shall assert a claim of exemption at the time of application by specifically identifying and marking such data as described in additional information Submitting Company Confidential, Proprietary or Privileged Information with Loan Applications.
Who must sign the certification required by Section 611.101(a) and the written assurance required by Section 611.101(m) of the Interim Final Rule?
Both the certification that the applicant meets each of the requirements of the program, and the written assurance regarding the Davis-Bacon (DBA) requirements must be signed by a responsible officer of the applicant.
Can funding from the ATVM loan program be included in the determination of financial viability?
The recipient of a loan must be “financially viable without the receipt of additional Federal funding associated with the proposed eligible project” to comply with the requirements of Section 136 of the Energy Independence and Security Act and the Interim Final Rule. Funds received (or anticipated to be received) from the ATVM loan program itself may not be counted when determining financial viability.
What are the fee arrangements between ATVM loan applicants and their professional advisors?
As a matter of policy, the Loan Programs Office strongly disapproves of fee arrangements with financial and/or other professional advisors to loan applicants that provide for payment of a contingent fee computed as a percentage of the amount of a loan issued by DOE. Generally, the Loan Programs Office will require restructuring of any such fee arrangement as a condition to the issuance of a loan. Fees that are computed on other terms, such as a fixed fee or a time and materials fee, but payable only at closing, are acceptable. Applicants are advised to structure, or, if necessary, restructure, their fee arrangements accordingly, and to clearly disclose in their financial model the basis of computation of all advisory fees to be paid in connection with the project.
Will borrowers that receive a loan under the ATVM loan program be required to comply with DBA requirements?
All projects involving construction, alteration, or repair, as defined in DBA regulations at 29 CFR §5.2(j), financed in whole or in part by a loan under the ATVM program are required to comply with DBA requirements. Specifically, Section 136(d)(2) of the Energy Independence and Security Act of 2007, as amended, requires that all laborers and mechanics employed by contractors or subcontractors during construction, alteration, or repair that is financed, in whole or in part, by a loan under this section shall be paid wages at rates not less than those prevailing on similar construction in the locality, as determined by the Secretary of Labor in accordance with sections 3141-3144, 3146, and 3147 of Title 40, United States Code.
Under DOL regulations at 29 CFR 5.5(a)(6), a borrower who receives a loan under the ATVM Program is responsible for DBA compliance by all contractors and subcontractors.
Are borrowers required to comply with DBA requirements with respect to construction activities undertaken prior to DOE’s issuance of an ATVM loan?
Consistent with DBA regulations at 29 CFR §1.6(g), the DBA must be complied with from the start of construction, alteration, or repair of a project, regardless of when the issuance of the ATVM loan has occurred. As such, an applicant seeking a loan under the ATVM Program for a project that has commenced such construction, alteration, or repair prior to the issuance of such a loan will have to make any necessary wage adjustments no later than the closing of the loan. There is an exception under 29 CFR §1.6(g) if the Administrator of the Wage and Hour Division, Employment Standards Administration at DOL finds that (i) such relief is necessary and proper in the public interest to prevent injustice or undue hardship and (ii) there was no evidence of intent to apply for Federal funding or assistance prior to the start of construction.